(Updates to close)
* Hang Seng up 0.1 pct on day, slumps 6.3 pct on week
* Shanghai Composite up 0.5 pct, down 1.2 pct on week
* Domestic consumption names gain at global cyclicals'
* HK turnover in past fortnight spikes to highest since Nov.
By Clement Tan and Vikram Subhedar
HONG KONG, Aug 12 Hong Kong shares edged up on
Friday as investors bought mainland consumer-related stocks to
hedge against the prospect of slowing global growth after
intense volatility knocked the benchmark Hang Seng index down 6
percent for a second straight week.
Stocks have been pummelled globally on U.S. growth concerns
and an unresolved European debt crisis during a frantic week
that even saw the Hong Kong exchange regulator beset by a
technical glitch -- it had to suspend trading in eight stocks on
Wednesday after its news Web site was hacked.
For the overall market, "we've probably seen the worst in
the last two weeks, but this day-to-day volatility should go on
until the end of August," said Banny Lam, a macro-strategist
with CCB International in Hong Kong.
"Systemic risk can hit a lot of sectors, but even if the
U.S. and Europe do badly, it won't have an impact on China
consumption," he added.
The Hang Seng Index edged up 0.1 percent on the day
to 19,620.0 points, but slumped to its worst fortnight loss
since Jan. 2009 and turnover over the last two weeks surged to
its highest since last November.
Amid jitters, investors this week moved from global cyclical
names to domestic consumer names such as Hengan International
Group Co , the mainland's largest maker of sanitary
napkins and a June addition to the Hang Seng.
It gained for the fifth-straight session, ending up more
than 5 percent for the week. By comparison, PetroChina Co Ltd
lost more than 9 percent this week.
In a client note on Thursday, Julius Baer advised that the
mainland market was likely to outperform Hong Kong, given that
the territory is expected to see higher volatility compared with
Asian peers because of the local currency's dollar peg.
ALCOHOL MAKERS SUPPORT SHANGHAI
In Shanghai, the same domestic theme was also evident.
Kweichow Moutai Co Ltd and Shanxi Fenjiu
, two of the more recognisable alcohol names on the
mainland were among the biggest supports to the benchmark.
The Shanghai Composite Index closed up 0.5 percent
on the day to 2,593.2 points, rounding off the week down 1.3
percent, its fourth straight weekly loss but relatively
outperforming Hong Kong and other Asian peers.
Alcohol producer stocks are classified a consumer staple by
the Shanghai bourse. Kweichow, a Chinese state-owned enterprise
that produces the premium Maotai liquor, gained almost 1 percent
on Friday in good volumes, while Shanxi Fenjiu gained almost 4
Large caps sensitive to inflation and growth figures
continued to see good gains and interest from investors. Oil
giants, PetroChina Co Ltd was the top support.
Reports on Friday that China's insurance sector had invested
10 billion yuan in the mainland stock markets
further boostingd sentiment that was already assuaged this week
after China's pension fund moved to stabilise the market with a
5 billion yuan investment.
(Editing by Richard Borsuk)